HC Deb 18 February 1997 vol 290 c506W
Mr. Alan Howarth

To ask the Secretary of State for Social Security what estimate he has made of the cost of the earnings top-up during its piloting stage; and if he will estimate the annual costs of a national scheme. [15073]

Mr. Roger Evans

The earnings top-up pilot is expected to cost a total of £65 million over three years. Two benefit rates—scheme A and scheme B—will test how different amounts of earnings top-up influence the decision to take up and remain in work. Present estimates indicate that the annual cost of a national scheme will be £265 million—scheme A—and £595 million—scheme B—at 1996–97 prices. These estimates would be subject to review as information on the effects of the benefit are collected and analysed during the pilot.